Business Finance Homework Help

Prepare a CQAD memorandum describing your analysis and conclusions regarding the company’s use of leverage, and its solvency and financial flexibility BASED SOLEY ON THE INFORMATION CONTAINED IN THE FINANCIAL STATEMENTS (INCLUDING FOOTNOTES) AND THE CQAD RECLASSIFIED SPREADSHEET. DO NOT RELY ON INFORMATION FROM ITEM 7 OF THE 10-K or any other comments by the company or any other source.

If your company uses off-balance sheet financing you should address this fact and the potential impact on capital structure.

Specifically, does your company have sufficient solvency and financial flexibility to warrant further investigation regarding the possible investment in the company’s common stock? Please note that we are still not in a position to determine if the stock is a good investment.

Your conclusions should be presented in the second paragraph of your memorandum and supported by the remainder of the memorandum.

BECAUSE YOUR DATA IS PERFECT, your conclusions can and should be definitive. At this point, I still do not care about what you think, believe, feel, suppose, assume or sense. What I do care about is what the data indicates.

Immediately after the second paragraph of your memo please insert a table displaying the capital structure (both in $ and as a percent of total assets) for at least the most recent 4 years. This will assist me in understanding your memorandum. You may disclose other data as you see fit. This is the minimum that I need to assess solvency and flexibility. At this point I am hoping to not have to look at your spread sheet.